Legal Question in Banking Law in New York

A business friend deposited a $10K check in my account from bank to bank, that is Chase to Chase. I was told they could check the funds immediately to see if the funds were available in his account before cashing it. When I went to my local branch, I informed the teller I just had a large deposit and wanted him to make sure the funds were available from that account. The bank teller gave me the cash. I gave it to my friend. I then found out the check was written from a closed account. This took place in September; the account had been closed since May. I Was told by Chase investigation that the bank was somewhat negligent and that branch may have to pay the funds back to Chase headquarters, but ultimately I am still responsible since I took the money out. I may have been stupid and scammed, but i TRUSTED the bank would do their part and they did not. My account is now in negative and I risk ruining my credit. Can I sue the bank just to absorb this cost, not to mention loss of sleepless nights and illness at the site of a Chase bank, Chase print ad or TV commercial? Can "I Chase what matters?"


Asked on 9/18/09, 11:52 am

1 Answer from Attorneys
Phroska L. McAlister PHROSKA LEAKE McALISTER

It does sound like you & the Bank were scammed.

However, if you received from the Bank a written confirmation of the Wire Transfer of funds deposited to your account, that "evaporated" from your account after your withdrawal; and all transactions occurred w/in the Chase "family" you might want to try negotiating with the Bank, before initiating a lawsuit. A lawsuit could be more expensive and embarassing, than you may currently imagine.

Good luck,

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Answered on 9/23/09, 6:54 pm


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